Court rulings wrap up Gateway saga

The Gateway Development Commission

The Gateway program's period of crisis seems to be at an end after two courts affirmed the federal government's obligation to fund the project. 

The Trump administration halted funding for the project last fall and a court ruled in February that the administration had to restart payments. Last week, the courts tied up some loose ends of the saga. 

On Wednesday, the Second Circuit Court of Appeals rejected the Trump administration's appeal to reinstate the funding freeze. Then, on Thursday, the Federal Claims Court ruled the Gateway Development Commission's lawsuit, filed against the administration when the project ran out of money, was moot. 

Gateway, a massive project to build tunnels under the Hudson River, is projected to cost $16 billion; most of that funding will come from the federal government. 

During the funding pause, the federal government withheld more than $200 million from the project. It has since repaid that sum, according to the New York Times, as well as the next scheduled payment, which was $50 million.

The GDC had argued in court that it needed a judgment to prevent the government from withholding funds again. The federal claims court disagreed but said the commission could seek damages for costs incurred because of the funding freeze. 

A spokesperson for the GDC told the New York Times the commission hopes the judge will award damages for the costs of temporarily shutting down the construction. If the administration tries to shut down the project again, the GDC said, the judge "made it clear that the court would provide expedited review of similar claims if they arise in the future."

After Thursday's ruling, New Jersey Gov. Mikie Sherrill said in a statement the state "will continue to fight, and continue to win, if Donald Trump tries to illegally stop funding again."